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U.s. 17, Us 10, New York 6, United States 5, Freddie 4, Bitcoin 4, Linkedin 3, Dick Bove 3, Peter Hayes 3, Carl Icahn 3, Charlie Gasparino 3, Gordon 3, Charlie 2, Cheryl Casone 2, America 2, Nicole 2, Mit 2, Leonard 2, Google 2, Patty 2,
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  FOX Business    Markets Now    Insight and analysis is  
   provided on the day's market action.  

    February 26, 2014
    1:00 - 2:01pm EST  

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have gotten so healthy in the last several years, you are working out, eating right, you look great. stuart: thank you. dennis: congratulations on the ratings, great that the audience has followed you into the new hour. adam: adam shapiro. gerri: i am cheryl casone. what was once the largest bid:platform disappearing over night. millions of dollars potentially gone and u.s. federal prosecutors want some answers. during this hour on man who has $300,000 tied up in he exchange and why he is still a bit:be beaver. >> chances are you on puerto ricans debt and don't know. two said the bond funds in the u.s. those who do may soon become second-class citizens. your money is on the line. peter hayes joins us as we await the details on pr's $3 billion
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bond offering. cheryl: you might think of a reliable no-frills hotel but that is about to change, the dairy addition targeted to the millennial traveler. adam: where apple technology that can scan printed text and hopefully help bankers read properly. we will hear from the creators. cheryl: it will operate the prompter better i am sure. adam: big-name companies reporting quarterly reports, sandra smith with a wrap up. to a big winners? sandra: we have been watching this. came out with earnings before the opening bell. a un interday chart to show you the stock continues to build on earlier gains, up nearly 7% on the a share. and the news wasn't great for target. they reported their expenses tied to the data breach were on the holiday shopping season, totaled $61 million that actually saying those expenses
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make into future profits. the profits did fall by nearly half for target so the company reacting positively to does to the news that it wasn't worse than a profit drop they had been forecasting due to the data breached. these are shares year to date for target. the stock has come down quite a bit and divide branch this out to a 1-year charge you see the hit that it took once the debris was announced in the fourth quarter and it has continued to sell off from there but news better than expected those on getting a nice pop, back to other earnings, lowe's out with better than expected earnings and sales. important to point out this follows home depot's better than expected quarter. both companies say there will be a lot of pent-up demand, during all that snow and cold weather people will start to go outside, renovate their houses after having a lot of snow sitting on their roofs and everything. really across the board some better than expected earnings boosting these markets.
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adam: him depot hitting a new high today. cheryl: making some news today activist investor carl icahn sent another letter to ebay shareholders saying, quote, he has raised what he considers to be serious and direct questions regarding corporate governance that ebay. the letter primarily focuses on conduct of the ceo john donahue and directed scott hoch, this after carl icahn charged the day's board with complete disregard for accountability, that is a quote earlier in the we. take a look at shares of ebay, not hurting vostok today, stock is up $1.57 a share, gain of almost 3%. adam: good news in the housing sector, new home sales will above expectations, rose nearly 10% in january to an annual rate of $468,000. that allow highest level since 2008. those gains driven by a surge in the northeast where sales surged 73%, so much for the weather. that news sent stocks into positive territory where they have remained since the dow was
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up 45 points. homebuilders gaining on the news even as mortgage applications for a new home fell last week and are at the lowest level in two decades according to the mortgage bankers association. cheryl: a bitcoin bombshell to tell you about. the shutdown of one of the digital currency's biggest exchanges is rattling the bitcoin market place, concern surrounding the viability of the digital currency. they are left with little recourse as bitcoin is unregulated, some moving huge sums of money including our next guest, the ceo of colinof all who joins us on the phone from panama. first, how much money at this point will you lose if mount gox is insolvent? >> something over 550 bitcoins which is a quarter million dollars. cheryl: you are coming out in defense of bitcoin?
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why would you defend bitcoin when you lost this amount of dollars? >> this isn't a problem with the bitcoin technology or protocol. it is a problem with one individual company, mount gox -- mount gox in japan. was a shady company that was not very trustworthy. they had problems for years and ultimately i got burned because i had fun there. cheryl: they're looking into mount gox to see if there is attribution, but you have a full defense of bit:in general and you say when it comes to regulators, quote, they are focused on amplifying and in cities destruction. this happened in the u.s. the federal reserve, they would have your back, you would get your $300,000 back. at this point you have got nothing so why blame regulators who could have stopped this and could have saved you?
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for what happened to mount gox but you can't regulate await incompetence and failure. that is what people try to do in the u.s. financial system and we're left with these too big to fail companies that posed systemic risks to the entire system. at bitcoin we don't have that and it is healthier. cheryl: supporters, even tech conference fors, zero financial experience. how can they be trusted to regulate something like bitcoin or even from a currency which again is not propped up? >> this is what the market takes care of itself. bitcoin has emerged from the bedrooms of 16-year-old packers over the past few years and is moving into the professional financial world of people who know what they're doing. mount gox was originating in that past world and they didn't have the experience or competence to be running and exchange. now they are gone and new companies like second market in manhattan are building things that are far more resilient and will carry bitcoin father. cheryl: even people like the n
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winklebvoss twins, they want t profit from this. more tech entrepreneur is finding ways to profit in dollars off of bitcoin, taking advantage of the average investor who may have thought this was a sound investment idea. >> people should not treated as an investment unless you're comfortable with highly speculative, experimental technology. bitcoin is used by normal people transfer value from one person to another round world without fees. you don't need to hold bitcoin for long time to do that. i wouldn't recommend to anyone -- cheryl: that is what has happening in 2013 and why so many viewers stayed away from bitcoin. frankly because it was $13 in january of 2013, a $1,100, any investment, stock, bond, anything with that much of a run-up would be a red flag for most people in this country but yet you still defend bitcoin.
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>> i defend bitcoin. i did not tell people to invest in it. people should stay away from it as an investment. people should learn to use it as a tool of finance but not hold onto it as an investment. that is an important distinction. cheryl: we are looking at $350 million of loss in mount gox and that may not end. we will see what prosecutors have to say. thank you for joining us. adam: investors anxiously awaiting details on a multi-billion dollar port region debt offering but current debt holders may be in for a nasty surprise when the plan is announced, peter hayes is head of the municipal bond group, welcome back to markets and what is the timeline on when we know we expect about a $2.8 million offering but when this will actually happen? >> a few weeks ago weber fast tracking the deal and we thought by now we have an offering document with details are around it and we haven't gotten that. in fact as of this morning the
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and it still had to approve the authorization to issue bondss as well as the important part, details around those bonds because as you alluded to the structure of this deal may have implications for existing bondholders. right now they are saying authorization any day, about a week later document will be mailed, two or three weeks later the deal will be priced so some time right now, mid march is the expectation. adam: discussions with different people who were following this they told me the hedge funds that are going to be the potential buyers of the estate are looking for i don't know if it is guarantees but at least some kind of protection. that is going to be the key in all of this. >> i completely agree. when i look at the fundamentals we have talked about this for a while. the fundamentals and puerto rico have not changed, they remain very weak which makes me wonder why investors are so interested in buying this deal with nothing has changed and you don't
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believe the economy is ultimately going to grow their way out of this so they must be looking for certain types of protections, certain elements of this deal to invest in other than the very high yield which is certainly one attractive element but i think they will be looking for those protections and that makes me wonder why this deal is being held up over the last couple of weeks. are some of those details still have to be worked out or not approved and what does that mean for the implications of the deal coming will ultimately gets done but the details are around it are very important. adam: one person's protection is another person's burn. let's talk about protection. for some of these hedge funds it could be as simple as if there is a matter to be adjudicated it would happen in new york courts, not where rican courts but for others who i have spoken to they want are details such as if i by this i have a first league should i have to against poor region taxes if i have to collect. what happens to the millions of retirees who right now might be holding puerto ricans ons.
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did that kind of been be granted by the border region government? >> a big question and the great question. you mentioned earlier quarter rico is widely held investment investor client portfolios. i think it is. we get asked an awful lot of questions about puerto rico which means it is still widely held and does have implications for the existing bonds. that is one element of what many of these investors are looking for. they want to be adjudicated in new york but what does that mean? of the restricted these bonds pdjudicated in new york versus all the other $70 billion of debt that get adjudicated in puerto rico soil, one court says one thing, another court says another, who wins? the federal government has to what does that mean for existing bondholders? a lot of complexity and questions still remain until we really see the details of this particular deal. adam: what is frustrating for investors is the specter live nature of all these discussions so we get something on paper but let's assume they come to the
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offer with the 9.5% coupons. that will drive down the price of existing puerto ricans bonds and what is going to happen to investors who hold those bonds now? >> agreed. over the last couple days we've seen pr's bonds rally a bit and that makes me wonder, a little puzzled by that because this deal will have to come at a discount, has to come cheaper in order to clear 2.5, 3 billion, probably at a discount so the proceeds to pr, somewhere in the $2.8 billion range which is what they need to buy themselves some time but i do question what that means for existing bondholders. i think there's any type of preference on this deal over existing bonds i think the value of existing bonds have to drop. connell: adam: millions of people applauded say, not just the 2.7 million people in puerto rico. we appreciate your input on this as always and i know we want to speak to you again as we get the details on this, thank you very
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much, have a good day. for more on pr at the problems go to foxbusiness.com/pension911. cheryl: breaking news into fox business. indiana university authorities say the personal data of 140,000 present and former students has been breached. the data includes names, addresses, social security numbers, between 2011-2014. servers in systems were not compromised but the university says files were access multiple times by automated data mining operations following a hack at the university of maryland that was announced last week. this is a growing problem. wanted to get that breaking news the. credit suisse scheming to help the wealthy avoid paying taxes. that is the charge from the u.s. government. the ceo's defense as he testifies in front of congress. adam: all-star banking analyst dick bove is known for his gutsy
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calls but wait until you hear his latest one on fannie mae, $18 price target. charlie gasparino's exclusive interview with him coming the. cheryl: talk about prime property. the husband and wife out for a walk. you will never believe what they say they found in their own backyard. we will be right back.
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cheryl: a news alert for you on a delicate situation in eastern europe. the ukrainian saber rattling by its neighbors to the east, russian president vladimir putin ordering a surprise military exercise in western russia right on ukraine's bourse that. john kerry weighing in today saying russia should be very careful in its judgments. and must respect the fragile nation's territorial integrity. adam: a scene set for of spy movie, senate investigators into the picture of hidden bank statements, remote-controlled elevators and alleging credit suisse bankers worked with wealthy americans to help them even a u.s. taxes. peter barnes is live from
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capitol hill. i feel like i should be calling you 007. what is going on? >> top executive at credit suisse admitted a small group of rogan bankers that its firms appear to have violated u.s. law by helping some americans hide their money in secret accounts to dodge billions in u.s. taxes. 7 bankers have been indicted by a justice department. others are gone as the bank insists it has been cleaning house and trying to clean up its practices particularly concerning 22,000 accounts for u.s. customers most of which are not documented to the internal revenue service. the senate subcommittee on investigations saas the account had 10 to $12 billion. its report, released today, tell stories of secret trips to the united states, bank statements delivered hidden inside a magazine. meeting in a room accessible by
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a remote-controlled, remote-controlled elevator with no buttons, the bank says it has closed most of the undocumented accounts but so far as only turnover 238 names of these u.s. customers to u.s. authorities because of swiss bank secrecy laws. >> we are ready to provide any information we can legally provide but i think as you point out the issue we have is two different legal jurisdictions and for us to break the law in one jurisdiction in order to provide that information is difficult for us to do. >> the jig is up, use a want to cooperate but you can't do it because of swiss secrecy laws. those laws don't apply in the united states. you are operating in the united states. >> a few years ago the united states and switzerland to negotiate a new tax treaty that all parties say would help solve these problems, get more names
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holders to u.s. investigators. the swiss parliament passed in 2010 but it has been bottled up here in the senate over privacy concerns. adam: thank you. every time you hear the banks say rogue bankers it is almost like that seen in casablanca, round of the usual suspects. wall street is about to get a little trickier. the ip 0 buzz for clothing retailer j. crew details ahead. cheryl: a husband and wife finding in their own backyard and wait until you hear how much it is worth. we will be right back. you are watching markets now. ♪
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cheryl: a couple in northern california making a once-in-a-lifetime discovery, millions of dollars in gold colin's. that treasure buried right on their property. claudia kaolin is live with the detaiis on one lucky couple land all that time, there it was. >> there it was.
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morrison 100 years. imagine walking your dog in your own backyard and stumbling across the greatest buried treasure ever found in north america. that is what happened here, 1400 rare gold coins, most dating from the 1880s and most likely buried by someone who decided putting their money in the ground was safer if than putting it in a bank, these were the days of the wild west when california's gold country was in many ways the edge of civilization. they were found a year ago by self-employed couple who had walked that have hundreds of times, worried treasure hunters might choke with treasures and backhoes they want to stay anonymous and rare coin experts say that is a smart move. >> we have seen shipwrecks that have phenomenal amounts of colin's on them but when you start to look at buried treasure we have never seen a group of gold colin's buried in the ground of this size in value. cheryl: the coins were found stuffed in eight rusty cans and
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a couple quickly realized they shouldn't handle anything before calling in the experts. good thing they did because cleaning the calling themselves could have reduced their value significantly. as it is this treasure is worth $10 million. several of the rest coins could fetch $1 million apiece when they go on sale on amazon. the couple will need to pay taxes on their sudden wealth likely over a million dollars but say they don't want to change their quiet life style. they plan to denny to charity and keep a few collins as keepsakes of their incredible buried treasure discovery. cheryl: i can't help but wonder if the previous owners will potentially try to find this couple and lay claim to this, the ears of some unknown gold rusher? >> this family has owned this property for many years. there have been efforts to locate whoever might have buried this treasure but so far they don't know who did.
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cheryl: probably the cheryl casone family. thanks. adam: i would go back in the dog with gold. from finding gold to retail gold, ppg capital with leonard green and bart is reportedly looking to take j. crew public with valuation as high as $5 billion almost twice the $2.64 billion value of j. crew's buyout by ppg and leonard green three years ago. the idea could come as soon as this year. cheryl: ibms have been so hot over the past year but look at michael coin. cheryl: got to get charles payne back on the show. the state of fannie mae hanging in the balance. the government needs to give control back to shareholders so you can still get a mortgage. charlie gasparino talks exclusively with dick bove about his bold call for the mortgage-backed coming that next.
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adam: from the mit labs, the finger reader creators are here, changing the face or hands of reading in the future. q beyonce. i ys say be thman with the plan
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medical conditions and medications. serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. ask your doctoabout iron. predibut, manacturing is a prettin the united states do. means advanced technology. we learned that technology allows us to be craft oriented no one's losing their job. there's br rot that has suddenly chased them o. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job don ameriprise asked people a simple question: can you keep your lifestyle in retirement?
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i don't want to think about the alternative. i don't even know how to answer that. i mean, no one kno how long their money is going to last. i try noto worry, but you worry. what happens when your paychks stop? because erne has retirement questions. ameriprise created the exclusive confident retirement approach. to get the real swers you need. start building your confident retirement today. cheryl: got stocks holding on to gains right now. the dow is up 49 points. head to the floor of new york stock exchange and nicole petallides. you're watching linkedin, nicole. what is going on there? >> it is doing well today. we'll bring you close to the post of linkedin and how it is faring. up 2.7% to be exact. this is because of an upgrade at rbc capital markets. mark mahaney raising his price target to 250 bucks up from5. he thinks after the research he
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has done linkedin is in a small, research that is competitive. that's good news there, following u.s. hiring recruiting professionals. they gave it high marks. that is good news overall for linkedin. don't forget we had linkedin launching in a chinese language. there will things need to happen but that opens up a whole new market for linkedin. it is a good performer and up 30% in the past year. back to you. adam: thank you very much, nicole. some of the nation's top banks wager importance of mortgage business. charlie gasparino has a exclusive interview with dick bove. he has a solution for share holders to take over. he has a 18 price target if they go through with it, right, charlie. >> when we spoke a little bit, dick, you blew me away. this is $40 stock, fannie and freddie. you think it goes to $18 a share. how does it get there if.
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>> i have to be very clear with you. if the u.s. treasury does not change any of the things today, the stork is worth zero because 2017 the company is gone. if on the other hand, the stock or company is returned to shareholders, since the company is earning about a buck 60 a share in my estimate and it can sell easily at 10 to 12 times that number, $18 a share is what it is worth. plus if you treasury decide to turn it back to the shareholders, the biggest winner of course is the american taxpayer because the american taxpayer will have 4 billion shares of this stock and will pick up $75 billion if the treasury does what it should do. if the treasury of course chooses not to, the u.s. taxpayer loses $75 billion and everybody else walks away with nothing in their hand. >> what exactly is the treasury trying to do? you have members of congress that want to get rid of fannie and freddie completely. the treasury holds the warrants. what do they want to do right
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now? this is in court right now, being challenged by investors, correct? >> correct. in other words what the treasury wants to do is take 100% of all the profits of fannie mae and freddie mac and put it into the treasury and wants freddie mac an fan fay take the capital down to zero in 2017 which would of course eliminate the companies. the basis of their making that claim are the desire to do that is something called the third amendment which is an amendment that the treasury put into place in 2012, in august of 2012, which from my point of view and obviously the point of view of the 20 or so companies suing the treasury is illegal. >> right. >> if that, if that amendment is taken out, then there's a chance that the tax, that the shareholders get the company back. >> we should point out you're not alone in this. bill ackman i believe is involved in this. there has been other lawsuits out there. richard perry, a big hedge fund executive, is suing the federal government.
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but you know, there are a couple, what i find so speculative about this if i may, number one you have to expect that the government is going to lose and, doesn't sound like they can lose this, doesn't it? i mean, this is the federal government. obama administration going to courts saying we bailed out this company. we own it. it is ours. we want to keep all the money and pay for all our welfare perhaps which is essentially what they're trying to do here? >> but they don't own it. they basically said very specifically in the 2008 housing recovery act which set up the current situation that, a, this would be a conservatorship and b, they would give it back to the shareholders once the conservatorship was ended. that would end when the company turned profitable. in august of 2012 it was very clear that the company, the companies had turned profitable and the government reneged on the deal. the government says, well, now we're not going to give it back to you. >> this sounds like it is going to the supreme court if you ask me. it is not at the supreme court. >> i'm sure it is.
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i'm sure it is if you're going to play the stock what is your time horizon in this thing? >> well i think that congress has got another issue to deal with here. if you eliminate fannie mae and freddie mac with nobody in congress is actually thinking about, you eliminate 20 and 30-year fixed-rate mortgages in the united states. i've spoken to at least a dozen banks. the biggest banks who issue mortgages in the united states and not one of them is willing to issue a 20 or 30-year fixed-rate mortgage if they can't sell it to fannie or freddie. so what does that do to the price of housing? >> it is rationallal that fannie and freddie go back to private company. i understand that what do you think the time horizon is this gets through the courts? >> i'll be honest with you, if goes through the courts the whole distance, it is three to five years. if the government decides there is a risk here, remember, "the new york times" is suggesting that there is fraud here and that the directors are at risk at this company for stockholder fraud on top of what the
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treasury has done. and you know virtually every day another insurance company that owns the preferreds in this company sues the government. so the government is not going to wait three to five years to resolve this it has got to resolve it sooner and it can't risk eliminating 20 or 30-year fixed-rate mortgages about this country. it just can't take that risk. >> when you do that you think it is an $18 stock, correct? >> when they do that the taxpayer makes $75 billion. >> you about the shareholders, $11 stock, correct. >> yeah. exactly. >> we've got to leave it there. thanks, dick. >> all right. adam: thank you, charlie. cheryl: we're actually getting some more breaking news into fox business. want to bring this to you now. looks like ebay is responding, the tech giant's reaction after activist investor carl icahn sent another letter complaining about the conduct of john donahoe and marc andreessen.
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calling on icahn to end the charade saying that the letters are entertaining but not factually accurate. heading up steady right now, 57.52. adam: going to pot. san diego passes new laws to allah the sale of medicinal marijuana but there's a catch. that is in your minute. cheryl: target and the new hotels. ♪ hi, are we still on for tomorrow?
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tomoow. quick look at the weather. nice day, beautifutomorrow. tomorrow is full of promise. we can ce back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomrow. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. oh, it's great. yeah. [ male announcer ] the best thing to share? a data plan. ♪ new at&t mobile share value plans for business. our best value plans ever. for example, you can get 10igs ofata to share. and 5 lines would be $175 a month. plus yocan add a line anytime for $15 a month. sharing's never been better for business. ♪
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>> i'm ashley webster with your fox business brief. hewlett-packard has won a $32 million cybersecurity contract from the department of homeland security. hp will provide software security to 33 federal, civilian, government agencies to prevent network vulnerabilities and defend against hackers. the fdic reporting that u.s. banks earned $40.3 billion in the fourth quarter. that is up 17% year-over-year. losses on loans also dropping to a seven-year low. for all of 2013, banks earned a record $154.7 billion. walmart's sam's club is testing a subscription service, similar o amazon's subscribe and save program. sam's club new service will let customers order some 700 items, including diapers, office supplies and beauty products online from the warehouse club and get free shipping. that is the latest from the fox
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business network, giving you the power to prosper.
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cheryl: radisson hotels set to lawn of a new brand. of radisson red will open new hotels. they have a specific target audience, the millenial generation which accounts for 21% of the global spending. we have the executive vice president and chief branding officer joins me right now. interesting, gordon, that you're targeting this particular consumer. a lot of these kids have student loans and living at home. why is radisson and carlton making this big bet? >> hi, cheryl. it is bigger than that. you look at sadly young people of today are old people of tomorrow, and i count myself in that equation as well. so what we're looking at is attitudes and trend and behaviors that are beginning to prevail now, p.e. little be the
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mel future. looking at behaviors. >> i have to jump in. you say behaviors for millenials. the hangover, the movie, part 4. we're talking about 20-somethings and hotel rooms. this could be recipe for disaster yet you're catering to that. you're putting larger bars into these hotels. are you concerned about the quality of customer you might get here? >> oh, you have such little faith in the youth of today. cheryl: i do, i'm sorry. >> we were all there once and we all grew up and we all get responsibilities and you can even see that in the changes in behaviors and attitudes and trust me, if you look at most hotels over the weekend period you will see pretty bad behavior. so that is something that we are doing actively encourage -- don't actively encourage of course. and something that is part of the territory.
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we're fighting that. cheryl: okay, no. i hope so. off hotels around the world by 2020. that is the goal here, spending 140 million bucks to push all of these forward. i certainly wish you the best of luck. hopefully, hopefully, gordon, the customers will be there and won't, you know, trash your hotels. fingers crossed, fingers crossed for the kids. gordon, thank you very much. good concept. >> thank you. thanks. adam: gen-xers with frequent flyer miles. delta air lines is revamping the frequent airlines program. don't, don't please. they will be based on pricessof tickets instead of distances flow. 90 million sky miles members will receive $5 spent on each ticket. >> concluding government taxes and fees. they are the largest carrier to make the shift used by smaller carriers like jetblue.
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cheryl: frequent flyer programs -- adam: people get angry. cheryl: like yourself, fight back, they will make the change that happened before in the past. adam: it has. cheryl: don't give up hope. adam: i love delta. it is good experience. you're the airline expert. >> no comment. adam: speaking of america's tax code, house ways and means chairman dave camp unveiling his ambitious tax reform proposal. the details are coming up next. cheryl: banning smartphones app hailing taxes? hell, no. macklemore the fight to save it in the west coast minute coming up. ♪ (announcer) scottre knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade balets my account follow me online so i can react in al-time. plus, my local scottrade office is tre to help. because they know i don't trade like everybody. i trade like me.
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i'm with scottrade. (announcer) ranked highestn instor satisfaction with self-directed services by j.d. power and associates. coach calls her a team player. she's kind of special. she makes the whole team better. he's the kind of player that puts the puck, horsehide, bullet. right where it needs to be. coach calls it logistics. he's a great passer. dependable. a winning team has to have one. somebody you can count on. somebody like my dad. this is my dad. sobody like my mom. my gndfatherer. i'm very prod of him. her. them.
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cheryl: we are getting breaking news on best buy. looks like the company is going to be cutting 2,000 managers. this is part of the turn around
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for ceo lee who came from the hotel industry. his plan to turn around best buy not to become circuit city. he is saying store closing, don't have any plans of store closing in the latest round of cuts. this is helping the stock. there you go, 26.04. seeing a bit of a pop on your screen. you can see a little bit of a boost on best buy. good news certainly for shareholders. rough news for those losing their jobs as managers at best buy. lee is trying to turn around the bloodletting at the company as they deal of course with online retailers, adam like amazon. want to get breaking news. adam: triesing to turn around tax policy in the united states. dave camp unveiling what he called a simpler, fairer, at that code at a news conference in washington, d.c. rich edson will tell us what that says. >> two tax brackets, 10%, 25%. goal to be revenue neutral.
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tax breaks will get hit. all they permanently repeals alternative minimum tax. gets rid of amt. repeals state and local deduction for state and local property taxes. caps at million doolars mortgage debt and bring this down to 500,000. compensation rules. 25% excise tax on compensation. in excess of one million dollars paid by tax-exempt organization. equalizes tax treatment of financial derivatives. there are banking taxes here. impose as new excise tax on certain business that is are systematically important. that is what the financial council when, they say that you're systematically important there is basically a broader bit of regulation imposed on that. also requires institutions to pay .035% tax on the worldwide consolidated assets in excess of $500 billion. a short while ago the chairman, dave camp opened up remarks pushing his plan. take a listen.
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>> the debate needing new tax reform is over. we already lost a decade. before we lose a generation we must enact real, meaningful tax reform to get this economy back on track. so today i'm releasing what is simpler, fairer tax code that leads to a stronger economy actually looks like. and more importantly, what that can mean for america's families and job creators. >> chairman camp may be only republican pushing this specific plan. the speaker of the house, john boehner, came to the microphones a short while ago and says he is pushing the concept of tax reform but didn't explicitly endorse what chairman camp is doing. on senate side, mitch mcconnell said no chance of getting tax reform in congress this year. adam: what are you following for that program? >> it is budgeting season. we'll talk about the defense department, its new budget and what it means for stocks and businesses who basically sell weaponry and defense products to the u.s. government.
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adam: we'll see you during "money." rich edson, thank you. cheryl: and it is too many for your west coast minute. arizona governor january brewer is reportly leaning towards vetoing a controversial piece of legislation that would allow businesses to deny service to gay and lesbian customers if it violates their religious beliefs. pressure to veto the bill is coming in on all fronts. there is now speculation the super bowl would not be held in phoenix next january if she were to approve this. we'll keep you posted certainly. the san diego city council is approving new rules that would allow up to 30 medical marijuana dispensaries within city limits. new zoning laws were passed after years of back and forth debate about neighborhood safety. dispensaries will have to be 1,000 feet from each other and schools and playgrounds and libraries and youth facilities. uber getting a big endorsement from rapper macklemore. the rapper using social media to
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complain about the city council plan to cap the total drivers to 300. macklemore, seattle native is urging fans to sign a petition saying no limits. he reaches out to his 2.23 million witter followers on their behalf. sure happy that they did. adam: peter hayes from blackrock on top of the show. puerto rico, on the wires, scheduled a vote to bring the bonds to market. we'll follow that. a wearable gadget that converts words on a page to speech simply running your finger over the word. cheryl: amazing technology hyped mit labs finger reader. that is coming up next. ♪ ♪
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with the mobile trader app. frotd ameritrade. with the mobile trader app. iwe don't back down. we only know one direction: up so we're up early. up le. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move ortart a new here. business here... and pay no taxes for 10 years. with new jobs, new opportunities and a new tax free plan. there's s to go. up. adam: bye-bye braille.
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a new device makes it a lot easier for visually impaired to read and as simple as to use as slipping on a ring. it is a wearable tech called finger reader. it converts tech to speech by running your finger over the words. it is created by the mit media lab. it is just a prototype but it is getting a lot of buzz. joining us now the creator of media labs and his professor. thank you both for being with us and joining us. roy, how did you get the idea to do this? >> thanks. well our research at mit media lab has been focused creating more natural user interphases. these devices make it easier for people to access applications or while moving about or doing other things and we thought that putting a camera on the index finger would make a lot of sense because people naturally point
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at things around them and ask questions. so that is where we got the idea to put a ring on the finger. adam: roy, i'm curious, the applications for this have to be greater than just the visually impaired. students learning a foreign language. even the fact that a blackberry or smartphone, that's a device that gets in the way. could this be kind of wearable technology that changes everything for us? >> we think that and indeed it can help you translate although we don't have that implemented yet but the apps, and technology already exist that is does that. it can help you translate right there and, and then you just look at some foreign language and translate it to you, and read it back to you or help you pronounce the words if you're just learning a new language or if you're learning a language, your first language. adam: patty, how do you market this, how do you bring this to
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market? how does this become part of the private sector or get commercialized or buy a device like this as we wrap up? >> i i want to stress this is jt a research prototype right now, but basically the students at the media lab are very entrepreneurial about want -- one in three of our graduates starts a company to commercial alize the research they have been working on and we also work with a lot of our industry sponsors in commercial alizeing the inventions that we come up with. adam: got it. roy and patty, this is fascinating. i got a feeling someone from google may be calling you in a few minutes or vc to give you some financing. all the best to you. >> thank you. cheryl: that is my type of 20-something. adam: what a great device. cheryl: melissa francis joins us and takes us through the next hour of fox business. what have you got coming up on "money," melissa. melissa: it's a big day.
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s&p flirting with record territory and oil rising and the bakken shale oil train. we'll go live to the cme to sew you what is happening. we have signature money-style throwdown on tesla, including a referee. look at that. rbs is paying out a billion bucks in bonuses. it is causing an outrage. does anyone care when google us did the exact same thing? even when they say it's not, it is always about money. melissa: oil climbing higher right now as the u.s. government looks to add new emergency regulations around transporting oil via railroads. over to fox business contributor phil flynn at cme. oil and natural gas is a big mover today. what is going on there. >> it is. we're seeing collapsing of the curve in march and the april mainly on changing weather